Gillys, you can’t say whether a business is good or bad simply...

Gillys, you can’t say whether a business is good or bad simply by the amount they are spending in relations to their revenue.

Nearmap is growing rapidly so it is natural for it to spend more than they earn. If Nearmap wanted immediate profitability it would have been much easier for them to just stay in AUS.

For example, if the US business keeps on growing by 100% for the next 3 years (8m to 16m to 32m & 64m) I’m sure the majority of investors will be perfectly fine for the company to raise another $20 million in 2-3 years time to sustain this huge growth.

You need to look at the rates of growth of expenditure vs the rate of growth of revenue, the truth is revenue is growing faster than expenditure. If this continues, breaking even & reaching profitability is only a matter of time. Because Nearmap has chosen to expand into the US, after breaking even, their profitability growth will be much better than if they’ve simply remained in AUS.

This company is bringing the upfront short pain for the benefit of a sustainable long gain position.